STOP Act

Settlement Tax Deductions are Over for Predators Act or the STOP Act

This bill amends the Internal Revenue Code to deny a trade or business expense deduction for any amount paid or incurred on account of a judgment or settlement originating from, or to require the non-disclosure of or otherwise prevent, a claim or accusation of sexual abuse or sexual harassment (including unwelcome sexual advances, requests for sexual favors, or other verbal or physical harassment of a sexual nature).

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4495 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 4495

   To amend the Internal Revenue Code of 1986 to deny as a trade or 
business expense deduction amounts paid or incurred in connection with 
     the settlement of a sexual harassment or sexual assault claim.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 30, 2017

 Mr. Buck (for himself, Mr. Jody B. Hice of Georgia, Mr. Garrett, Mr. 
 Taylor, Mr. Pearce, Mr. Johnson of Louisiana, Mr. Brat, Mr. Meadows, 
and Mr. Fitzpatrick) introduced the following bill; which was referred 
                   to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
   To amend the Internal Revenue Code of 1986 to deny as a trade or 
business expense deduction amounts paid or incurred in connection with 
     the settlement of a sexual harassment or sexual assault claim.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Settlement Tax Deductions are Over 
for Predators Act'' or the ``STOP Act''.

SEC. 2. DENIAL OF DEDUCTION FOR SEXUAL HARASSMENT SETTLEMENTS.

    (a) In General.--Section 162(f) is amended--
            (1) by striking ``and Penalties'' and all that follows 
        through ``under subsection (a) for any fine'' and inserting the 
        following: ``, Penalties, and Other Amounts.--No deduction 
        shall be allowed under subsection (a) for any of the following:
            ``(1) Any fine'', and
            (2) by adding at the end the following new paragraph:
            ``(2) Any amount paid or incurred on account of a judgment 
        or settlement (whether by suit or agreement and whether as lump 
        sum or periodic payments) originating from, or to require the 
        non-disclosure of or otherwise prevent, a claim or accusation 
        of--
                    ``(A) that which would constitute an offense under 
                chapter 109A of title 18, United States Code, or
                    ``(B) sexual harassment (including unwelcome sexual 
                advances, requests for sexual favors, or other verbal 
                or physical harassment of a sexual nature).
        The preceding sentence shall include any amount paid or 
        incurred in connection with negotiating or settling an amount 
        described therein.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after the date of the enactment of 
this Act.
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